IMF outlines reserve currencies criteria

Different central banks adopt different approaches in what the IMF described as a "critical decision", because currency risk is the area in which reserve managers confront the greatest market risk.

To mitigate this risk, some central banks -- including those in Canada, Turkey, the UK, New Zealand, Latvia and Hungary -- match the currencies of assets and liabilities as closely as possible. In the UK, clarified the Bank of England, deviation from this portfolio is permitted, within pre-defined